Aug 30, 2024, 2:00 AM
Aug 30, 2024, 2:00 AM

EU faces challenge as Gazprom launches TurkStream gas exports

Provocative
Highlights
  • Turkey's energy minister announced the launch of TurkStream 2, enabling BOTAŞ to export significant volumes of natural gas to Central Europe.
  • Despite efforts to reduce dependence, Russian gas still constitutes a notable portion of the EU's imports, complicating support for Ukraine.
  • The EU must take decisive action to halt Russian gas transit through TurkStream to fully cut off Kremlin profits and support Ukraine.
Story

On August 21, Turkey announced plans for TurkStream 2, allowing its state-owned gas monopoly BOTAŞ to export 7 to 8 billion cubic meters of natural gas to Central Europe under the new brand 'Turkish Blend.' This blend will include a significant share of Russian gas, potentially exceeding the stated 40 percent, as Gazprom collaborates with BOTAŞ to establish a Russian gas hub in Turkey. Despite efforts to reduce reliance on Russian energy, the EU still imports 15 percent of its gas from Russia, which has implications for its support of Ukraine amidst ongoing conflict. The TurkStream pipeline not only facilitates Russian gas exports but also complicates European diversification efforts by introducing discounted gas into the market. This situation allows Russia to obscure the origins of its gas, enabling Gazprom to sell directly to clients while bypassing Ukraine. The EU's antitrust body is currently investigating the deal for potential rule violations. To counteract these developments, the EU could implement measures to ensure that all gas entering from Turkey and Ukraine is identified as Russian, thereby generating revenue for Ukraine's reconstruction through taxation. Additionally, a clear phaseout date for Russian gas imports could be established, along with a robust verification system to trace gas origins. As the conflict in Ukraine continues, fully decoupling from Russian energy would demonstrate Europe's commitment to supporting Ukraine and reducing the Kremlin's financial leverage through energy exports.

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